European Commission Ends Probe into Microsoft-Time Warner Deal for Anti-Piracy Software Company

The European Commission has closed its investigation into the proposed acquisition by Microsoft and Time Warner of a small anti-piracy software company, ContentGuard, after the French technology group Thomson became an equal partner in the deal. The regulator initially raised concerns that the takeover would give Microsoft an undue advantage in the digital rights management market, but the new partnership structure has alleviated these concerns. This development comes after a significant shift in the deal's ownership structure, which is expected to have a lasting impact on the market for digital media and entertainment.

Key Takeaways:

• The European Commission has ended its probe into the proposed takeover by Microsoft and Time Warner of ContentGuard, citing a change in the deal's ownership structure due to Thomson's involvement.
• Thomson's acquisition of a one-third stake in ContentGuard in November addressed the Commission's earlier concerns about Microsoft's potential dominance in the digital rights management market.
• The new deal, which includes Thomson as an equal partner, no longer requires the Commission's permission to proceed because none of the three groups will have effective control over ContentGuard.
• The regulator initially argued that control over ContentGuard's technology would have reinforced Microsoft's dominance in the computer operating systems market, and the Commission feared this could tip the market for digital rights management in Microsoft's favor.
• Thomson's involvement in the deal has made it an unlikely scenario that Microsoft would have an undue advantage in the market, alleviating the Commission's concerns.
• The deal is significant for the development of digital media and entertainment, as digital rights management is crucial for content providers to control the way consumers use online music and films.

Statistics:

• The European Commission's investigation into the proposed takeover by Microsoft and Time Warner of ContentGuard lasted for an unspecified amount of time.
• The regulator initially raised concerns that the takeover would give Microsoft an undue advantage in the digital rights management market, which was valued at an unspecified amount.
• The shift in the deal's ownership structure, with Thomson becoming an equal partner, was announced in November of an unspecified year.
• The new deal structure is expected to have a lasting impact on the market for digital media and entertainment, which is valued at an increasing amount each year.

Sources:

• The European Commission
• Thomson
• ContentGuard
• Microsoft
• Time Warner
• The market for digital rights management is seen as crucial for the development of digital media and entertainment.

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